Any current/future new fundraising through debt or equity?

No specific details on new fundraising through debt or equity were disclosed. Vishal Salvi mentioned they have an in-principle approval for new investments and are now entering the execution phase. The company does not disclose the actual amounts related to these investments publicly. The company is zero debt currently, with a strong balance sheet and cash equivalents of Rs.226 crores as of FY24. There is a focus on using internal resources and Board-approved plans for funding product portfolio strengthening and growth initiatives. No mention was made of plans for raising fresh capital through

Any current/future capex/capital investment/strategic investment?

The company has received in-principle approval from the Board for new investments aimed at strengthening their product portfolio and expanding market reach, particularly in Horizon 2 and 3 solutions like EDR, XDR, Zero Trust, data privacy, and Gen AI-powered offerings. These investments will be executed over the next few years, targeting an increase in the serviceable addressable market from Rs. 1800 crores to Rs. 4000 crores by FY27. No specific amounts or detailed capex figures have been disclosed publicly. The company plans to continue investing heavily in R&D and product development

Future growth expectations in sales/revenue/volumes?

The company aims to increase its addressable market from Rs. 1,800 crores to Rs. 4,000 crores over the next three years (FY25-FY27) through organic growth, new products, and market expansion into mid and large enterprises. Enterprise segment revenue has grown from 20% to 37% and is expected to continue increasing, eventually becoming larger than the consumer business. Enterprise cybersecurity industry is growing at 11-12% CAGR; the company expects to grow its enterprise segment faster than the industry average. Consumer business faces headwinds but aims to maintain or marginally grow its marke

Future growth expectations in earnings/operating earnings/profits/EPS?

FY24 EBITDA margin improved significantly to 6% from less than 1% the previous year, with EBITDA standing at Rs.18 crores. Expect gradual increase in EBITDA margin driven by revenue growth outpacing expense growth. Operating expenses projected to rise with increased investment, especially in R&D and new product development. Confident in higher revenue growth than industry (enterprise segment industry growth ~11-12% CAGR). Focus on expanding addressable market from Rs.1800 crore to Rs.4000 crore by FY27 through new products, market segmentation, and regulatory drivers. Consumer business relativ

Current/ Expected Orderbook/ Pending Orders?

Government deals faced some deferrals due to the general elections and model code of conduct. These deferred government deals are expected to be resurrected and concluded in favor of the company post-election. Sales cycles for government contracts typically range between 6 to 9 months. The company is confident about winning these government deals once election-related restrictions are lifted. Enterprise segment traction is improving, with over 200 enterprise clients onboarded in FY24 for new products. The company continues to consolidate and grow its presence in the SMB market, leveraging a st

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Quick Heal Technologies LtdQ1 FY24IT - Software

Quick Heal Technologies Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹177P/E: 196.4Market Cap: ₹1.1K CrSector: IT - Software

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company aims to increase its addressable market from Rs. 1,800 crores to Rs. 4,000 crores over the next three years (FY25-FY27) through organic growth, new products, and market expansion into mid and large enterprises.
→Enterprise segment revenue has grown from 20% to 37% and is expected to continue increasing, eventually becoming larger than the consumer business.
→Enterprise cybersecurity industry is growing at 11-12% CAGR; the company expects to grow its enterprise segment faster than the industry average.
→Consumer business faces headwinds but aims to maintain or marginally grow its market share through continued efforts.
→Investments in Horizon 2 and 3 solutions (EDR, XDR, Zero Trust, Data Privacy, Gen AI adoption) supported by board-approved funding.
→Strategic partnerships (e.g., M.Tech national distributor) and regulatory drivers (like DPDP Act) will support broader market penetration.
→EBITDA expected to grow gradually as revenue growth outpaces expense growth.

Margin guidance

Category 2

→FY24 EBITDA margin improved significantly to 6% from less than 1% the previous year, with EBITDA standing at Rs.18 crores.
→Expect gradual increase in EBITDA margin driven by revenue growth outpacing expense growth.
→Operating expenses projected to rise with increased investment, especially in R&D and new product development.
→Confident in higher revenue growth than industry (enterprise segment industry growth ~11-12% CAGR).
→Focus on expanding addressable market from Rs.1800 crore to Rs.4000 crore by FY27 through new products, market segmentation, and regulatory drivers.
→Consumer business relatively mature with higher margin; enterprise business still growing, focused on volume and market share at initial lower margins.
→No explicit quarterly/annual EPS guidance provided, but margin expansion and revenue growth suggest improving profitability over next 3 years.
→Board-approved investments expected to strengthen product portfolio, supporting sustained earnings growth.

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Fundraise plans

→No specific details on new fundraising through debt or equity were disclosed.
→Vishal Salvi mentioned they have an in-principle approval for new investments and are now entering the execution phase.
→The company does not disclose the actual amounts related to these investments publicly.
→The company is zero debt currently, with a strong balance sheet and cash equivalents of Rs.226 crores as of FY24.
→There is a focus on using internal resources and Board-approved plans for funding product portfolio strengthening and growth initiatives.
→No mention was made of plans for raising fresh capital through external debt or equity in the near term.

Order book

→Government deals faced some deferrals due to the general elections and model code of conduct.
→These deferred government deals are expected to be resurrected and concluded in favor of the company post-election.
→Sales cycles for government contracts typically range between 6 to 9 months.
→The company is confident about winning these government deals once election-related restrictions are lifted.
→Enterprise segment traction is improving, with over 200 enterprise clients onboarded in FY24 for new products.
→The company continues to consolidate and grow its presence in the SMB market, leveraging a strong partner network.
→No explicit numeric order book value or pending order size was disclosed in the call.

Capex plans

Yes

→The company has received in-principle approval from the Board for new investments aimed at strengthening their product portfolio and expanding market reach, particularly in Horizon 2 and 3 solutions like EDR, XDR, Zero Trust, data privacy, and Gen AI-powered offerings.
→These investments will be executed over the next few years, targeting an increase in the serviceable addressable market from Rs. 1800 crores to Rs. 4000 crores by FY27.
→No specific amounts or detailed capex figures have been disclosed publicly.
→The company plans to continue investing heavily in R&D and product development to maintain a strong Make in India cyber security portfolio and address evolving threats.
→They aim to build new service capabilities (including managed detection and response) alongside product offerings over the next 3-5 years.
→Inorganic opportunities such as acquisitions in cloud security or DLP engines are also being considered as strategic investments.

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